Policy digest

Stabler VAT returns to local finance

The State Council, China's Cabinet, announced a decision to revise the method of calculating value-added tax (VAT) returns to local regions. The central government has been returning part of the VAT intake since 1994 when the reform divided tax collection between the central and local governments. Starting this year, the central government will return a fixed amount of VAT to local governments formulated on the base number for 2015, which will not be changed even if the VAT intake changes.

Plan to implement development agenda